There’s enough gold to exchange for oil – BoG

The Bank of Ghana (BoG) says it has sufficient quantity of gold reserves to sustain the gold for oil policy.

The government took delivery of the first consignment of the gold for oil deal on Monday as part of efforts to reduce fuel prices and reserve the country’s forex.

Many have however raised concerns about the government’s ability to sustain the policy.

Appearing before the Public Accounts Committee, the Director of Financial Market at the Bank of Ghana, Stephen Opata says the Central Bank is well positioned to meet the demand of 160,000 ounces of gold per month under the transaction.

“As for the quantities, based on the production numbers we saw last year, gold has picked up. We believe that, we can buy enough gold to sustain the program. I must say that the numbers we are currently looking at is about 160,000 ounces per month and that will represent about 50 to 60 percent of the consumption of the country. According to what PMMC indicates, I think we have volumes to support the program.”

40,000 metric tons of oil from the United Arab Emirates arrived at the Tema port on Sunday, January 15, 2023, according to the Ministry of Lands and Natural Resources.

The Energy Ministry, the Bulk Oil Storage and Transportation and Oil Marketing Companies are to formulate plans for its distribution and sale.

This according to the Lands Ministry will help reduce fuel prices in the country.

The Vice President, last year announced plans by government to purchase oil from the UEA with gold to keep the country’s forex.

Though many have kicked against the move and questioned its sustainability, the Lands and Natural Resources Ministry says measures have been put in place to sustain it.